Non-bank Financial Institution Casebook

| 25 RETURN TO CONTENT PAGE The Solution With the focus on the aviation industry, YeePay recognized this friction and sought to address it with a unique proposition. In the second half of 2019, YeePay decided to harness its 100% owned subsidiary, a licensed travel agent company to set up a Virtual Cards Account (VCA) Program with Citi. Under the program, Citi generates virtual cards for the subsidiary company to issue to overseas travel vendors such as airlines and hotels to charge upon making bookings. Leveraging YeePay’s network and Citi’s solid product capability, YeePay led an industry-wide improvement with a new ticket issue process that mitigates current pain points. Now, as customers book international air tickets with travel agencies, the agents place the order with YeePay’s VCA platform; the pertinent virtual cards could then be authorized, generated and ready for settlement; when global travel vendors accept and charge the virtual card, the corresponding booking would be confirmed. Similar to a regular credit card, YeePay’s subsidiary eventually pays Citi the outstanding sum during each statement cycle with the funding sources from ultimate customers. The Result The solution benefited the travel ecosystem in multiple dimensions. Firstly, more local OTAs can now offer overseas travel options through YeePay’s ecosystem while maintaining the same quality of transaction efficiency given processing, settlement and information exchange are seamless under the Virtual Card program. Additionally, this solution can benefit travel aggregators in terms of cost savings and eventually end consumers. Leveraging this, YeePay has strengthened its market status in the global travel and aviation ecosystem. This solution can benefit travel aggregators in terms of cost savings and eventually end consumers.